5-26 T-Account Analysis of Cost Flows [L03, L06, LO7] Selected ledger accounts for Realm Company are given below for the just-completed year Raw Materials Manufacturing Overhead Bal. 1/1 Debits 30,000 Credits 420,000 ? Debits 385,000 Credits Bal. 31/12 60,000 Work in Process Factory Wages Payable Bal. 1/1 70,000 Credits 810,000 Debits Direct materials: 320,000 179,000 Bal. 1/1 Credits 10,000 175.000 Direct labour 110,000 Bal. 31/12 6,000 Overhead 400,000 Bal. 31/12 Finished Goods Cost of Goods Sold Bal. 1/1 Debits Bal. 31/12 40,000 Credits ? ? Debits 130,000 115 1. Required: What was the cost of raw materials put into production during the year? 2. How much of the materials in (1) consisted of indirect materials? 3. How much of the factory labour cost for the year consisted of indirect labour? 4. What was the cost of goods manufactured for the year? 5. 6. 7. 78 8. What was the cost of goods sold for the year (before considering underapplied or overapplied overhead)? If overhead is applied to production on the basis of direct materials cost, what rate was in effect during the year? Was manufacturing overhead underapplied or overapplied? By how much? Compute the ending balance in the Work in Process inventory account. Assume that this balance consists entirely of goods started during the year. If $32,000 of this balance is direct materials cost, how much of it is direct labour cost? Manufacturing overhead cost